Nepal lifts ban on Indian 200 and 500 rupee notes

Nepal has lifted a nearly decade-old restriction on Indian currency, allowing Indian and Nepalese nationals to carry Indian 200 and redesigned 500 rupee notes across the border. The decision, formally reaffirmed by the Nepal Rastra Bank (NRB) on July 23, 2026, ends a rule imposed after India's 2016 demonetisation that had limited travellers to carrying only notes of 100 rupees or lower.

The central bank's notice specifies that the new provision applies only to Indian 200 rupee notes and redesigned 500 rupee notes issued on or after November 9, 2016. The overall limit for carrying Indian currency remains unchanged at 25,000 rupees per person. Older Indian 500 and 1,000 rupee notes demonetised by India in 2016 remain prohibited in Nepal.

NRB spokesperson Guru Prasad Paudel clarified on July 25 that the revised rules are expected to ease travel for Indian tourists visiting Nepal and support Nepalese traders and businesspeople who frequently conduct transactions with India. The move is anticipated to boost cross-border travel, trade, and financial transactions between the two neighbours, which share an open border and deep economic ties.

The regulations include specific restrictions...